01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Eversource reported first-quarter 2026 GAAP net income attributable to common shareholders of $606.8 milliona, or $1.61 per diluted share, up from $550.8 million ($1.50) a year earlier.
The result includes a $60.4 millionb pre-tax ($43.9 million after-tax, $0.12 per share) charge tied to FERC's March 19, 2026 Opinion No. 594, which cut the New England transmission base ROE from 10.57% to 9.57% and ordered refunds with interest. Excluding the charge, non-GAAP earnings were $650.7 million, or $1.73 per share. Operating revenues rose 9.4% to $4.50 billion, driven by base distribution rate increases at NSTAR Electric, PSNH, Yankee Gas, NSTAR Gas and EGMA, and higher wholesale market and tracked energy costs.
Interest expense rose 21% to $365 millionc, largely from $46.9 million of regulatory-deferral interest accrual on the FERC liability. The bigger investor issue is the FERC refund exposure. The company recorded only the $60.4 million low end of a reasonably possible pre-tax loss range of $60.4 million to $932 million, because management views refunds on the retroactive period (about $871 million pre-tax at the high end) as not probable.
The NETOs have sought rehearing and a stay of the retroactive refunds, and on April 30, 2026 proposed a prospective replacement ROE of 11.39%. The company also flagged an offshore wind contingent liability of $298.2 milliond (down from $448.2 million) that could increase materially if Revolution Wind costs rise further. Aquarion's sale to the Aquarion Water Authority was approved by PURA on March 25, 2026, but was not classified as held for sale because appeals create significant timing uncertainty.
Liquidity is solid: operating cash flow was $1.32 billion, cash rose to $270 million, and commercial paper capacity was $2.12 billion. The company reaffirmed 2026 non-GAAP EPS guidance of $4.57 to $4.72 (revised for the ROE reduction and the potential Aquarion sale) and long-term EPS growth of 5% to 7% through 2030.
02—Key points
Key Highlights
- GAAP EPS of $1.61 (up from $1.50) includes a $0.12 per-share after-tax charge for the FERC ROE refund; non-GAAP EPS was $1.73, up 15% year over year.
- FERC Opinion No. 594 cuts the NETO base ROE from 10.57% to 9.57%, with prospective earnings impact of roughly $70 million after-tax annually (partly offset by about $5 million in incentive adders); the recorded liability is $60.4 million, but the estimated reasonably possible range runs up to $932 million pre-tax.
- Regulated segments drove growth: natural gas distribution earnings rose $76.9 million, electric distribution rose $14.4 million, and electric transmission excluding the charge rose $24.9 million.
- Offshore wind contingent liability declined to $298.2 million from $448.2 million after $150 million of Revolution Wind payments; management warns that further cost overruns could cause a material additional loss.
- Liquidity remains strong: operating cash flow of $1.32 billion (up from $1.04 billion), $1.5 billion of new long-term debt issued, $250 million repaid, and $2.12 billion of available commercial paper capacity.
- 2026 non-GAAP EPS guidance was revised to $4.57 to $4.72, reflecting the ROE reduction and potential Aquarion sale; long-term EPS growth target of 5% to 7% through 2030 is unchanged.
- Aquarion sale received PURA approval on March 25, 2026, but was not classified as held for sale because appeals and closing adjustments make the timing and completion uncertain.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.54B$4.11B | +10.5% |
| Operating Expenses | $3.43B$3.19B | +7.4% |
| Operating Income | $1.08B$926.39M | +16.2% |
| Net Income | $608.72M$552.67M | +10.1% |
| EPS (Basic) | $1.61$1.50 | +7.3% |
| EPS (Diluted) | $1.61$1.50 | +7.3% |
| Shares Outstanding (Basic) | 376.03M367.32M | +2.4% |
| Shares Outstanding (Diluted) | 376.58M367.68M | +2.4% |
05—Questions
Frequently Asked Questions
How much could Eversource ultimately have to refund to customers over the FERC ROE complaints?
The company recorded a $60.4 million pre-tax liability, the low end of a reasonably possible range of $60.4 million to $932 million. The high end includes about $871 million of retroactive refunds for October 16, 2014 through March 19, 2026. Management does not consider the high end probable, citing legal deficiencies in the retroactive application, but says the ultimate outcome is uncertain and losses could be material.
Why did GAAP earnings include a charge, and how does the company view it?
The $43.9 million after-tax charge reflects the estimated refund for the first complaint period, including interest, required by FERC's March 19, 2026 order. Management presents non-GAAP earnings excluding it, arguing it is not indicative of ongoing performance. Investors should note that the prospective ROE cut is a recurring earnings headwind of roughly $70 million after-tax per year.
What is the status of the offshore wind obligation and could it grow?
The contingent liability for purchase price adjustments owed to GIP stood at $298.2 million as of March 31, 2026, down from $448.2 million at year-end, after first-quarter payments tied to Revolution Wind cost overruns. Management believes this balance is adequate, but says additional cost overruns, delays, or a change in the value of investment tax credits could significantly increase it in a future period.
Is the Aquarion sale going to close, and what happens to the proceeds?
PURA approved the sale to the Aquarion Water Authority on March 25, 2026, after remand from the Connecticut Superior Court. However, the company did not classify Aquarion as held for sale because appeals create significant uncertainty about timing and completion. Eversource plans to use net proceeds to pay down parent company debt, and the sale has been reflected in revised 2026 guidance.
Is Eversource's balance sheet and funding position under pressure?
Total assets grew to $64.7 billion. Notes payable fell to $533 million from $1.53 billion, and the company issued $1.5 billion of long-term debt in the quarter while repaying $250 million. Current long-term debt rose to $2.64 billion, which will need refinancing. Operating cash flow of $1.32 billion and $2.12 billion of available commercial paper capacity provide near-term flexibility. Common equity rose to $16.5 billion, helped by $47 million from treasury share issuances and ATM-related capital.
06—Continue